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How to Determine Stock Trading as a Home Business?

How to Determine Stock Trading as a Home Business?
September 22, 2021 Martha Stokes CMT

How to Determine Stock Trading as a Home Business?

List for Evaluating Costs vs. True Profits

True profit is one big part of trading that most traders fail to include in profit evaluation. How to calculate the true cost of your trading is considering more than just the cost of charting software, broker fees and charges, and possibly subscriptions to newsletters.

In order to accurately calculate whether a trade is profitable or not, you must also include ALL of the normal business expenses for Stock Trading as a Home Business.

Otherwise, you are deluding yourself as to your profitability in trading.

Stock Trading as a Home Business includes the following:

1. You MUST pay yourself something for your time. How much could you make an hour working for a corporation in your field of expertise or your degree?

That is the minimum amount you should use as a base for trading expense as an hourly wage.

2. You must also include the average losses. You must take an average of your losses each month and divide it into your trades per month, and then subtract that loss from your profits of every profitable trade.

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3. Other expenses include your computer, printer, and other hardware depreciation.

4. In addition, there is the office space in your home, electricity, internet, phone, and office expenses such as paper, pens, and journals.

5. Finally, add up the cost of time attending webinars and reading articles, and also if you pay a simulator fee.

If you did an accurate and thorough calculation of your TRUE trading costs, you would find that taking a 25-cent profit on a 100–1,000 share trade is not at all profitable. You are actually losing money every time you trade. Recognizing Dark Pool Candlestick Patterns and using Leading Indicators to enter a stock trade earlier are crucial for higher profits and can turn your trading hobby into a career that all your friends envy and admire.

Go to the TechniTrader Learning Center and watch a training webinar.

Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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Martha Stokes, CMT is co-founder and CEO of TechniTrader. She is a retired professional Buy-Side Analyst and was awarded the Chartered Market Technician designation for her thesis, "Cycle Evolution Theory." Martha is a passionate teacher of the financial markets and a prolific writer, having created over 40 stock, option, and financial market courses.